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Huge Joint Debts After Separation - What to do? :(

11 replies

brokenbiscuits1 · 08/03/2013 18:00

Hello.

I would like to ask some advice about what happens to joint debts once a couple have separated. I will try and be brief but accurate with the facts so that maybe (hopefully) one of you can relate and advise. Sorry it's a bit long :( We are not entitled to legal aid and just cannot afford to pay a solicitor unless we absolutely have to so any advice or experience with this greatly appreciated.

My partner and his ex split around 3 years ago. They were cohabiting but not married. They had/still have a joint mortgage and a joint loan. She has refused to pay any payments to either of them since they separated. He works in a profession which means he will lose his job if he is given a CCJ or similar, he simply cannot have unmanageable debt. She doesn't care and knows this about his job so has dumped him with all the debt in the hope (we think) that he will worry and be forced to pay them all off to save his job whilst she walks away from the joint debts.

Mortgage:

She moved out of the jointly owned house (her choice I will add) and he agreed to stay there and pay the full mortgage for a few months whilst it was put on the market to be sold. She then refused to agree to sell it, refused to reply to letters he sent her asking to discuss, refused to meet with solicitors present and ignored letters from his solicitors about it. He could not afford to pay it alone and has struggled to do so since. He has now stopped paying it as it simply isn't possible to afford on his salary alone, it was a large mortgage base don both of their full time wages.

He has had the house valued recently and it is worth a lot less (about 30k) than what is left on the mortgage. The only thing she has said in over 2 years is that she will sign the forms to sell only if he agrees to pay all fees and make up the 30k needed to cover the negative equity. Just to add that she has a new rented home and doesn't want to live in the jointly owned property, she has shown no interest in it in all this time. He has looked into getting it rented out but the mortgage wouldn't be covered by the rental income and would require a large sum of money for works and decorating to bring it up to rental standard.

Does anyone have any idea of how he can make her take responsibility for a jointly owned property she has walked away from? Ideally he'd like to apply to court to force the sale and split the negative equity into two loans split equally between them, is this likely? Also he paid the rather large deposit when they purchased it - will this be taken into account?

Joint Loan:

This loan was taken out when they were together, the loan was for her and he co signed it. She agreed to make all payments and it was paid on time from her acct each month until they separated, he has never paid it. Then when they separated she immediately stopped paying and told him she would no longer pay it. The loan paid for her expensive car and other personal items, all of which she took when they separated. She still has this car and he is sick at the thought that she has dumped the loan on him to force him to pay it whilst she is still driving around in the car.

Again, any advise of how to force someone to take responsibility for this? Can he apply to court to have the financial situation decided by a judge. He just wants what's fair and to both have to take responsibility for joint debts, not to have to take it all on whilst she drives away in her nice car without looking back.

Thank you for reading, I know it's long - I have also posted this in legal...

OP posts:
RedHelenB · 08/03/2013 18:25

How about taking in a lodger or two to help pay the mortgage? Unfortunately you can't split debts if they are joint - if one person can't/won't pay they come after the other.

I would advise him to talk to his bank, explain his financial difficulties & see if they could switch him onto interest only. Are you in a position to move in & help out financially?

brokenbiscuits1 · 08/03/2013 18:35

Thank you for replying, even if it's not what we wanted to hear :( We really hoped there was a way to apply to court (somehow) to force her to take on her share of the debts. She's already got a CCJ and huge debts of her own (in addition to these) so she's not bothered.

He has spoken to his bank who have advised that she is ignoring all correspondence and the mortgage is already interest only.

The problem is that because it's a small house it wasn't even really big enough for them after they had their two children and the plan was (if they had stayed together) to move to a larger house. It certainly isn't anywhere near big enough for us all (me, him, his 2 children and my child) to all live in, one double and one single bedroom only. He stayed there much longer than he ever agreed to in order to give her time to actually be decent and agree to jointly pay off the debts, but she shit on him, basically. But we now live together and rent our house, the jointly owned property is empty and in a real shit state. She also said previously she liked him being there as she knew what he was up to, had keys etc and didn't want him living with anyone else, a form of control I guess.

Poo! :(

OP posts:
RedHelenB · 08/03/2013 18:42

Do the children live with him or their mother? Because presumably if he lost his job it would impact on her maintenance for the children so that might be a bit of leverage to get things sorted.

Is he allowed an IVA in his job?

He really needs to pull his finger out & get the house down up to a rentable standard & then at least some money will be coming in.

brokenbiscuits1 · 08/03/2013 18:51

The children live with us mainly but also with their mother, they have a shared residency order. She pays him maintenance, forced by CSA as he is financially responsible for the children. She WANTS him to lose his job, she has always said so since they split as she knows how much it means to him.

No, he can't have an IVA either.

It will cost a lot to get it to rental standard, but then what? We struggle financially topping up the rental income to meet the mortgage, then years and years down the line he might be able to sell and break even and she's bloody got away with it all. Or maybe once it's all done up nice she might just move back in there and carry on not paying the mortgage, as joint owner she has keys and I don't think we can stop her living there if she wants to.

It just seems so crap that one person can dump joint debts on the other person like this. Bitch. :(

OP posts:
RedHelenB · 08/03/2013 19:03

I would move into the house if it were me as I imagine that would not please her either, and then the money saved on rent could pay off the loan. Yes it would be a squash but at least it would sort the finances out.

keli5325 · 08/03/2013 21:18

what profession is he in?

brokenbiscuits1 · 10/03/2013 13:45

Thanks for all the advice so far, Keli, I don't really want to say as it would "out" us totally then, if I haven't already from the info given. x

OP posts:
Shakey1500 · 10/03/2013 13:52

What are your living arrangements now? Renting,owner?

It's true they can just persue one party for the full amount. I had this after a split and had no choice but to pay. Took a couple of years but nowhere near what you're experiencing. I understand your resentment.

Collaborate · 10/03/2013 14:58

He should apply for an order for sale under s14 of TOLATA (trust of land act). He'll get the order for sale. They are jointly and severally liable for the neg equity and the unsecured debt, but he may be able to do a deal with the creditors (does he have a relative who would help out?) that sees him pay half up front and they agree not to pursue him for the remainder.

brokenbiscuits1 · 10/03/2013 20:36

Thank you collaborate Do you mind if I pick your brains and ask what form it is we need to make the application to court?

We just can't afford a solicitor at the moment and not entitled to legal aid. We have done our own C100 before and that was straight forward, do you think we'd be able to do the application for the order for sale ourselves or is it very complicated?

Lastly, is there anyway to bring the unsecured debt in front of a court? He'd like a court to order she takes responsibility for the loan, rather than dumping him with it. However, that seems unlikely, but at least he would like the expensive car (which was purchased with the money from the loan) sold to pay off a large amount of it before they start repaying it. Is that possible/likely/worth a shot?

Thank you in advance!

OP posts:
AndBingoWasHisNameOh · 11/03/2013 14:14

I would look again at how much difficulty an IVA or similar would actually mean to him. Lots of professions it is an issue but doesn't necessarily mean striking off if it occurs. Look carefully at the rules and speak to whatever helpline they have as it may not be as bad as you fear. Even for bankrupcy.

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